Class 11 and class 12 japan s experience from recipient to donor 2018(1)

Japan as Recipient : Japan’s Post-war Economic Recovery and Growth in Relation to Foreign Assistance to Japan 1 Some Basics on Development and Development Cooperation 1 Five Stakeholders

Class 11 and Class 12 Japan’s Experience ~From Recipient to

Donor~

Table of Contents

1 Japan as Recipient : Japan’s Post-war Economic Recovery and Growth in

Relation to Foreign Assistance to Japan

1) Some Basics on Development and Development Cooperation

(1) Five Stakeholders in Development

(2) International Development Approaches/Strategies and Where We Stand

(3) Development Issues and Problems: A Bird’s Eye View

(4) Special Remarks

2) Japan’s Economic Development

(1) Foundations for or Prelude to Japan’s Modern Economic Growth

(2)Modern Economic Growth: Long-term Modern Economic Development of Japan(3) Post-war Economic Recovery and Accelerated Economic Growth: a Closer Look3) Post-war Economic Recovery and Foreign Assistance to Japan

(1) Post-war Recovery Period (1945~1956)

(2) Post-war High Growth Period (1957~1969)

(3) The Role of Foreign Assistance to Japan

Class 11 and Class 12 Japan’s Experience ~From Recipient to

Donor~

2 Japan as Donor ~Japanese Official Development Assistance (ODA) to

Developing Countries

1) Japan’s ODA Policies and Methods of Implementation

(1) Japan’s ODA History and Its Policies

(2) Implementation of Japan’s ODA

2) Japan’s ODA Philosophy and Characteristics

(1) General Feature of Japan’s ODA

(2) Japan’s Fundamental ODA Philosophy vis-à-vis ODA Charter

(3) Japan’s ODA and How It Has Helped to Develop Asian Countries

(4) New Challenges for Japan’s ODA in Early 21st Century

1) Some Basics on Development and Development Cooperation

(1) Five Stakeholders in Development (Fig 2)

(i) Developing Countries

Part I Countries

Part II Countries

(ii) Aid Agencies and Governments of Developed Countries/Industrialized

Countries

Bilateral Aid Organizations: JICA(Japan), USAID (USA),

CIDA (Canada), DfID (UK), AFD (France), KfW/GIZ (Germany)

(iii) Multilateral Development Banks (MDBs)

Multilateral Aid Organizations: World Bank (IBRD, IDA, IFC, MIGA),

IMF, ADB, AfDB, IDB, EBRD

1 Japan as Recipient : Japan’s Post-war Economic Recovery and Growth in

Relation to Foreign Assistance to Japan

Note: Part I and Part II division was abolished in 2006

(iv) United Nations Specialized Agencies

Multilateral Aid Organizations

UNDP (Technical Assistance as a whole)

UNIDO (Industrial Development)

FAO (Food and Agriculture)

(v) International Development Forums

DAC (Development Assistance Committee)

ECG (Export Credit Group)

Paris Club

London Club

CG (Consultative Group Meeting)

(2) International Development Approaches/Strategies and Where We Stand

Figure 1 International Development Approaches/Strategies

Japan's Rapid Eco Growth

CEECs/NIS Economic Recovery and Growth '45 '60 '70 '80 '90 2000 '15

(3) Development Issues and Problems: A Bird’s Eye View (Fig 3)

(i) Economic Issues/Problems (hereinafter I/Ps)

Macro Economic I/Ps such as underdeveloped economic system,

under-developed market, small market, high inflation, low saving ratio, lack of

foreign exchange, unemployment and so forth

Industrial I/Ps such as economic infrastructure, technology and technical levelmanpower, entrepreneurship, traditional vs modern sub-sector and so forth

Agricultural I/Ps such as physical infrastructure, small farmers, technology and technical level, agricultural organizations, disguised unemployment and

overpopulation and so forth

Economic-Services-related I/Ps such as information/communication, credit creation and banking services, distribution network and so forth

(ii) Social I/Ps

Institutional I/Ps such as class system, land tenure system, administration,

education, health and social security and so forth

Multi-society Complexity I/Ps such as different languages, different races/

tribes, different religions and so forth

Society-specific Values and Value Judgment such as labor, traditional values(such as women, children, predecessors, extended families), time/rules/

responsibility, colonial influences and so forth

(iii) Political I/Ps

Political Systems and Institutions such as democracy, political parties,

political pressure groups, social safety, military conflicts and civil wars

and so forth

Once these I/Ps are identified and prioritized, they are accordingly formulated

into various policies and policy measures At the same time, the government

extracts national development objectives to be achieved within a certain period

of time, say, 5 years Then, they are incorporated into national development

plans

For reference, the following specific policies may be formulated as priority:

Economic Development Policies such as infrastructure development policy,

industrial development policy, agricultural development policy, trade

develop-ment policy, banking and financial sector developdevelop-ment policy and the like

Social Development Policies such as land policy, educational development

policy, administration development policy, health/medical development policy,

tribe/religion/race policy, cultural policy and the like

Political Development Policies such as foreign relations policy, military policy,security policy and the like

(4) Special Remarks

Scan Globally and Reinvent Locally!!

The experiences and lessons the world has undergone do not necessarily

applicable directly to an individual developing country However, there is a

large scope to reformulate them for and fit them into the local conditions

Japan’s development experiences should, therefore, be treated as such

Developing Countries

Transitional Economies

Financial & Technical Cooperation

DevelopedCountries

Multi AidOrganizations

International Aid ForumsFigure 2 Bird’s Eye View of Development Cooperation

Developing Country National Dev Plan

Priority Dev Objectives/

Social I/Ps

Economic

Dev Policies

Political Dev.

Policies Economic

2) Japan’s Economic Development

(1) Foundations for or Prelude to Japan’s Modern Economic Growth (Industrialization)

Japan's Modern Economic Growth is believed to have started in 1886: A couple of distinct economic events are;

In 1881, National Railway started its services, and then private railway

In 1884/85, Two Sea-Transportation Companies were established in accordance with growth of

industrial production

(Early Modern Economic Growth is believed to have taken place between 1886 and early 20 th

century)

(i) Basic (Prerequisite) Factors for Modern Economic Development

① Political and Economic Institutions

⋆ Class System was dissolved

⋆ The centralized modern government was established

(Introduction of a new tax revenue base/system, from rice to money)

⋆ The government experienced inflation and succeeded in containing it by employing the deflation policy (balanced budget)

⋆ As a result, the central bank of Japan (Bank of Japan) was established in 1882

② Human Resources

⋆ Quality human resources were handed over from “Edo” feudal Era (~1865)

In 1872, population of Japan was 34 million, of which 21 million were labor force 43% of male population and 10% of female population were educated

⋆ Political leaders (Politicians) and Entrepreneurs were from the Knight Class, who had high

moral of Confucianism

⋆ Public Education started in 1872

Primary school enrollment rate in 1873 was 28% and in 1890 was 50%

③ Social Indirect Capital

⋆ Road network was well-established during Edo Era by 1865 (But, not for carts though)

⋆ In-land water-transportation network was more developed

⋆ Irrigation system was well-developed during Edo Feudal Era

⋆ Telecommunication started its services in 1870

⋆ Postal services started in 1871

⋆ Railway services started in 1872

In short, the sufficient foundations for modern economic growth/development are laid before

1886

(ii) State of Core Industry Development

① Agriculture

⋆ Agricultural population was 15.4 million in 1872, 72% of total population

⋆ Agricultural (domestic) technology was fairly developed

⋆ Agricultural products trade or merchandising rate was 20% of total production

⋆ In 1869, Class System dissolved

⋆ In 1872, trade of agricultural land was freed, which accelerated free movement of labor (to

modern industrial sector)

⋆ Agricultural production grew at a rate of 1.7% /year on an average from 1878 to 1885

② Manufacturing Industry

⋆ Textile Industry was developed with relatively low domestic technologies But since three

textile factories were introduced with modern (imported) technologies in 1867, 70, 72, rapid development in cotton and silk industries towards 1886 was recorded

⋆ Metal, machine, wooden products: their technological levels were still quite low

⋆ Mining: the government nationalized all the existing mines

⋆ Shipbuilding and steel manufacturing factories were nationalized

Later, all these national factories were divested to private entrepreneurs, which in turn

caused to emerge financial cliques (conglomerates)

⋆ The growth rate of industrial production was 3% /year on an average from 1878 to 1885

③ Commerce and Finance

⋆ The commercial sector development took place at cities/towns in 200 ‘lord’ states during Edo

period (Merchants and banker/brokers worked actively between consumers and landlords.) ⋆ Accumulated commercial capital provides funds for industrial investments

In 1882, the central bank/Bank of Japan was established In 1885, bank notes (currency)

were issued

⋆ In 1899, the “limited company system” was introduced, which modernized

business/firm management

In short, towards the end of 19 th century, the commercial sector was well-developed

(2) Long-term Modern Economic Development (Growth) in Japan

(i) Long-term International Comparison (Table 1)

⋆ Over 78 years, the Economic Growth took place at 3.6% per year on a moving average, which

is one of the highest among the developed nations and as high as USA

⋆ The population growth recorded at 1.1% per year, not high-not low among the countries

⋆ The Per Capita economic growth was at 2.5% per year, remarkably high among the countries

⋆ In real terms, Japan’s per capita income in 1886 was only 60% of U.K or 29% of U.S.A In

1999, Japan’s p.c.i ($35,715) exceeded U.S.A ($34,047) and U.K ($24,548)

Why the Japan’s economic growth was that high and successful?

⋆ One of the explanations is the “Late-comer’s Advantages.” (Gerschenkron Hypothesis) This was proved empirically among the developed countries, on condition that a country in question has to have “the social absorptive capacity ” In addition, it should be warned that the late - comer’s advantages may become a disadvantage where rapid population growth results in low investment through abrupt increase in consumption level

(ii) Steady Long-term Economic Growth and Cyclical Ups and Downs during the Course (Figure 1 and Table 2)

Before the War

① 1885~1896 Upwards Swing in Growth Rates

⋆ By 1895, the state railway expanded to 955km, while private railway 2,731km

⋆ Electricity services expanded rapidly since 1883

⋆ Two Sea-Transportation companies expanded their services with the Gov.’ support

since 1884 and 85

⋆ The cotton spinning industry increased its production rapidly since 1883

② 1897~1903 Downwards Swing in Growth Rates

⋆ The economic expansion hit the ceiling The “Gold Coin Standard ” was employed in

1897 This meant an appreciation of Yen Exports dropped sharply (B/P worsened) and economic growth slowed down, resulting in economic crises ③ 1904~1918 Upwards Swing in Growth Rates

⋆ Japan-Russia War (1904~05) stimulated Japan ’s modern industries Bond issues in the

foreign market stimulated the economy as well

⋆ Increased imports due to economic upswing and increased debt services gradually

worsened B/P This disequilibrium disappeared owing to the World War I (1914~18)

⋆ High economic growth resulted

⋆ Light industries expanded further

⋆ Heavy industries (Steel, Machinery, Shipbuilding) lai d their foundations for future

development

⋆ Labor surplus in rural Japan disappeared temporarily

④ 1919~1928 Downwards Swing in Growth Rates

⋆ Exports slowed down since 1917 (Peak year)

⋆ 1920 encountered economic crisis

⋆ 1923 encountered a Huge Earthquake (Kanto-Daishinsai)

⋆ Harsh economic circumstances forced modern industries to upgrade their managerial

efficiency, to realign business concentration, to promote o ligopolization (oligopoly situation) , and to strengt hen the financial clique

(Conglomerate)

⋆ Lifetime employment system and seniority system were consolidated (the typical

Japanese management style)

⋆ Skilled manpower was kept in the industries and unskilled labor was left unemployed,

resulting in unemployment problem and widened wage gap between the skilled and the unskilled

⑤ 1929~1936 Upwards Swing in Growth Rates

⋆ In 1929, the Government t ook the retrenchment policy to improve economic health

towards more competitive economy

⋆ In 1930, Gold Trade freed (Gold trade had been prohibited since 1917) This meant 15%

of Yen appreciation

⋆ In 1930~31, Japan experienced severe economic crisis (owing to 1929~ U.S Economic

Crisis), which caused bankruptcies and unemployment problem

⋆ In 1931, Gold Trade was banned and the Government employed the expansionary policy

(Government bonds’ issue, budgetary expenditure expansion, inflationary policy)

⋆ The value of Yen was dropped and exports expanded

⋆ Industrial production expanded

⋆ Heavy industries, in particular, expanded

⋆ The unemployment problem did disappear

After the War

⑥ 1945~1956 Downwards Swing in Growth Rates Post-war Recovery Period

⋆ Production capacity was damaged substantially and

hyper inflation arose

⋆ To cope with this situation, the Government exercised urgent policy measures

such as freezing bank deposits in 1946

⋆ In 1946, the Priority Production System was introduced

⋆ In 1947, the publicly owned Reconstruction Finance Bank was established ⋆ In 1948, Economy was brought back onto the growth path But inflationary

pressure re-emerged

⋆ In 1949, the fiscal retrenchment and tight money policy was introduced

(Dodge’s Line)

⋆ In 1950, the Korean War started

⋆ The economy recovered due to the War demand

⋆ In 1951, “Treaty of Peace with Japan” was signed between Japan and the allied

powers

⑦ 1957~1969 Upwards Swing in Growth Rates Accelerated Growth Period

⋆ Over 10% of economic growth throughout the period

⋆ Causes : Investment spurt in equipment and machinery

(Investment rate reached 35.3%) : Introduction of new technology and equipment

(imported from the Western countries)

: “Income Doubling Plan” by Prime Minister Ikeda in 1960

: The fixed exchange rate US$1.00 = 360 yen

⋆ By 1960, labor shortage became persistent phenomena

⋆ As a result of this boom, inflationary trend reappeared and serious

environmental degradation appeared

⑧ 1970~1975 Downwards Swing in Growth Rates

⋆ US B/P was greatly worsened and the International Monetary System was

collapsed

⋆ As a result, the fixed exchange regime changed into the floating exchange

rate regime In 1971, US$1.00 = 308 yen

⋆ To avoid economic recession, the Government employed an easy money

policy But exports did not drop and an excessive liquidity problem arose (meant inflationary pressure)

⋆ In 1973, the first Oil Crisis occurred

⋆ In 1973~1974, Japan experienced Hyper Inflation (Kyoran Bukka – Crazy

Prices Hike)

⋆ The Government exercised the tight money policy, and inflation ended

Economic growth slowed down and labor shortage ended

⑨ 1976~1987 Upwards Swing in Growth Rates Stable Growth Period

⋆ The tight money policy ended in Spring, 1975

⋆ In 1977, the fiscal policy was used to stimulate the Japanese economy

⋆ Exports did not drop as ever

⋆ The economy was brought back onto the stable economic growth path During

this period, growth rates 3~5%, stable prices, low unemployment rates, which is one of the best performances in the developed countries at the time ⋆ In 1976, the current account of B/P turned into surplus at last And since then,

the foreign exchange was accumulated rapidly

⋆ The Second Oil Crisis (1979~80) did not affect this trend

⋆ In 1985, “The Plaza Accord” was reached and Yen was appreciated

substantially US$1.00 = 150 yen

⋆ In Oct 1987, US stock market collapsed (Black Monday) US$1.00 = 122

yen

⋆ Under these circumstances, the government could not raise the Official Bank

Rate at 2.5% level, which in turn caused the commercial banks to expand their lending, regardless of borrowers intentions upon ‘land mortgage’ only ⋆ Land prices and stock prices were dramatically hiked, which was the entrance

of “Bubble Economy.”

(3) Post-war Economic Recovery and Accelerated Economic Growth: A Closer Look

(i) What were the causes of economic recovery and high growth after the war (1945~1969)?

① Recovery from the War damages and the Korean War (1950~1953)

The demand-pull growth in a sense was taken place

② Post-war Democratization

⋆ The financial clique was dissolved

⋆ Agricultural Land Reform

⋆ Legalization of Labor Unions

③ The Government Expansionary Economic Policies

⋆ The low interest policy

⋆ Development plans (often revised) to stimulate investors and entrepreneurs to expand investment activities

④ Decrease in Defense Expenditure

⋆ The resources were diverted towards economic recovery and development

⑤ The Introduction of New Technologies and Equipment

⋆ Mostly imported from the Western countries

⑥ The Full-Employment Policy Pursued by the Developed Countries

The economies of the developed countries grew substantially, expanding international commodity/products markets They became the export markets of Japan

It should be noted that the above causes were translated into actual economic recovery and high growth upon making the most use of the following factors, to be called the “social absorptive capacity,” which had long been brought up since 1886

① Disciplined political leaders (politicians)

② Efficient and effective government administration

③ Entrepreneurs’ modern and positive thinking to introduce new technologies

④ Engineers who could understand and digest the new science and technologies

⑤ Hard-working laborers who got quickly accustomed to handle and operate modern equipment and machinery

⑥ Social/economic infrastructure development

⑦ Financial system development

⑧ Distribution system development

(ii) Comments on the Drop in Per Capita Economic Growth since Early 1970s

① Disappearance of “Late-comer’s Advantages.”

② Changes in economic policies of the developed countries

→ Abandonment of the full-employment policy

③ Two oil crises (1973 and 1978/79) caused to demolish viable foundations of chemical industrial development It took time to re-establish a new price structure of the economy

heavy/pet-(iii) Comments on Causes of the Economic Slow-Down since 1980

① Complete disappearance of “Late-comer’s Advantages.” Japan’s new role was to develop technologies on its own

② Industrial (Demographic) Structure shifted from the second industry (manufacturing industry) to the third industry (services industry) substantially Consumers’ tastes changed, too More variety products and less amount of respective product

③ Aging of labor force and decreasing younger population

④ Emerging LDCs as exporters, stronger pressure to open the Japanese market, more investment abroad (FDI) and less investment in Japan As a result, the Japanese economy suffered from the “Hollowing-out Syndrome” of Japanese industries

⑤ Shift from Producer’s Economy to Consumer’s Economy which pays much more attention to environmental concerns

Table 1 Long-term Economic Growth, Population Growth and P.C.E Growth

Table 2 Japan’s Economic Growth, Population Growth and P.C.E Growth

Growth Rate

Population Growth Rate

Per Capita Economic Growth Rate

ICS Prof Koji FUJIMOTO

Figure 1 Japan’s Long-term Economic Growth

Note: G(Y) Economic Growth Rate P: Peak

G(N) Population Growth Rate T: Bottom

G(Y/N) Per Capita Income Growth Rate

3) Post-war Economic Recovery and Foreign Assistance to Japan

(1) Post-war Recovery Period (1945~1956)

(i) LARA (Licensed Agencies for Relief of Asia) Assistance

① US NGO was organized, as one shop window to collect aid goods from USA,Canada, Mexico, Chile, Brazil, Argentina, Peru, etc, by the initiatives of

American pastors who had once lived in Japan and learned the misery of

in 6 cities started to serve lunch for children with LARA foods It is said that

“one out of six” Japanese people were benefited from LARA aid

(ii) UNICEF Assistance

① UNICEF was established in Dec., 1946 as the United Nations InternationalChildren’s Emergency Fund Its purpose was to rescue a large number of under-nourished children in Europe and Asia

② In Autumn, 1949, UNICEF aid reached Japan Over 15 years until 1964, UNICEF aided Japan as needed

③ UNICEF’s first arrival of relief aid included 1,400 boxes of raw cotton

which were processed into children’ clothes, 2,800 tons of skim milk

which were distributed to nurseries, public elementary schools and

orphanages in a dozen of cities of Japan In later years, UNICEF aided

natural disaster affected people on occasions such as Hokkaido

cold-weather damage, Isewan typhoon, Chilean tsunami, and so on Over 15

years, UNICEF’ relief aid amounted to ¥6.5 billion (over US$18 million)

(iii) CARE (Cooperation for American Relief for Everywhere) Assistance

① CARE is an American/International NGO (the largest in the world), which was established in 1945 in USA Its primary purpose was to provide the

war-affected in Europe with foods, clothes and the like

② CARE started its aid to Japan in 1948, which lasted for 8 years until1955

③ CARE relieved school children and the youth with foods (skim milk,

chocolate, raisins, wheat flour, sugar, etc), clothes, the necessaries of life,medicine and so forth The total amount of relief aid reached US$50 million (¥18 billion)

(iv) GARIOA/EROA Assistance

① GARIOA stands for Government Aid and Relief in Occupied Areas and

EROA stands for Economic Rehabilitation in Occupied Areas Both of

them were the US Government aid programs, whose funds were secured

in the military budget, to relieve the hardship life of the war-affected in

the occupied areas GARIOA aimed to secure the social safety, and

EROA aimed to rehabilitate the war-torn economy

② GARIOA/EROA started in 1946 and lasted for 6 years until 1951 These

relief aids might correspond to the Marshall Plan that US Government

carried out for European economic recovery between 1949 and 1951

③ From 1946 to 1951, GARIOA/EROA assistance amounted to US$1.8 billion(approximately equivalent to ¥648 billion), out of which US$1.3 billion were

in the form of grants If we recalculate this US$1.8 billion in today’s

Japanese currency value, it should be equivalent to ¥12 trillion One can

learn how huge this is, when we think that the present annual Japanese

ODA level is in the vicinity of ¥1 trillion

GARIOA supplied, to achieve the above mentioned purpose, the

necessaries of life such as foods, fertilizer, medicine and the like EROA

supplied, similarly, industrial raw materials and capital goods such as

machines and equipment

(2) Post-war High Growth Period (1957~1969)

(i) World Bank Assistance (1953~1966)

① The World Bank (IBRD) was established in 1945 as one of the Bretton

Woods Institutions Its purpose was to reconstruct the war-torn economies

of Europe and Japan and to stimulate the growth of the less developed

regions in the Third World

(The other institution of the Bretton Woods is IMF, whose aim was to

maintain global monetary stability, primarily through the mechanism of fixed but adjustable exchange rates.)

Japan joined the World Bank and IMF in 1952

② The World Bank began its financial assistance for Japan’s post-war

reconstruction, with a loan to Tanagawa Thermal Power Project in 1953 And the final loan was committed in 1966 for the Highway Project between Tokyo and Shizuoka Japan completed its debt repayment to the World

Bank in July,1990

③ During the period of 14 years, the World Bank signed 31 loan agreements,which included 34 projects The World Bank lent Japan US$862.9million in total (in terms of Japanese yen, it is equivalent ¥311 billion: 360 yen/$×

$0.8629)

The World Bank-funded projects included economic infrastructure

projects such as the Kurobe Hydro Power No.4 Project, the Shinkansen

Bullet Train Project, the Tokyo-Shizuoka Highway Project The World

Bank also financed the industrial projects of private sectors including

steel mills and an automobile factory

The majority of projects were financed through publicly owned Japan

Development Bank This form of lending is called “Two Step Loan.”

Table 1 shows the sector breakdown of the World Bank projects and

Table 2 the entire list of the projects

④ The relative importance of the volume of the World Bank’s financial

assistance, ¥311 billion, is difficult to evaluate But the figures of

Japan’s GNP during this period may help understand it GNP in 1955, 57,

59, 61, 63 and 66 are, respectively, ¥8,370 billion, ¥10,858 billion,

¥13,190 billion, ¥19,337 billion, ¥25,113 billion and ¥38,170 billion In

1955 terms, the World Bank assistance shares 3.7% and, in 1966 terms,

0.8% The Social Absorptive Capacity, shown at 1-2)-(3) above and Table 4 below, must have played the crucial role in causing the World Bank

assistance to contribute to the rapid economic growth of Japan, to its

maximum extent without wasting a penny out of it

Table 1 World Bank Loans to Japan by Sector

Sector Amount (US$1,000) Capacity

Highway (Road) 430,000 Tokyo-Osaka Trunk Expressway

Railway 80,000 Tokyo-Osaka Shinkannsen Railway

Steel 157,900 Furnace Capacity of 7,360 ton

Ship-building 3,150 (Turbine and Engine Mfg Equipment)

Irrigation and Land Development

11,300 (of which Aichi Canal Project 7,000)

Aichi Canal Project: Irrigated Land 33,000ha; Power 10MW; Main Canal 112km and Branch Canal 1,300km; Water Supply (Domestic 17.9 mil m3and Industrial 27.2 mil m3)

Automobile 2,350 (Engineering Machines for Bus and Truck)

Table 2 World Bank Loans to Japan

Interest Rate(%)

Loan Amount ($1,000)

Repayment Period

Grace Period

1 1 10/15/53 12/29/53 JDB

Kansai Electric Power Co.

Tanagawa Thermal 5.000 21,500 20 3.5

2 2 10/15/53 12/29/53 JDB

Kyushu Electric Power Co.

Karita Thermal 5.000 11,200 20 3.5

3 3 10/15/53 12/29/53 JDB

Chubu Electric Power Co.

Yokkaichi Thermal 5.000 7,500 30 3.5

4 4 10/25/55 02/16/56 JDB Yawata Steel

Co.

Thick Roll Mill 4.625 5,300 15 2.5

5 5 02/21/56 03/25/56 JDB NKK

Corporation

Seamless Steel Tube Mill

4.750 2,350 15 2

7 02/21/56 03/25/57 JDB IHI Heavy

Industries Co.

Tokyo Factory Ship- turbine Mfg Equipment

4.750 1,650 15 2

8 02/21/56 03/25/57 JDB

Mitubishi Ship-building Co.

Nagasaki Shipyard Deasel Engine Mfg Equipment

4.750 1,500 15 2